After the selling pressure yesterday, the bears had a slight edge. But, as I discussed in my opening post, it is a rare thing for the bears to gain momentum. More often than not, pullbacks -- even those that take out a support level -- are triggers to buy rather than to sell.
In early going, the S&P 500 is holding up and is finding some buying support. Breadth is running a bit negative, and there definitely is a lack of energy, but the bulls don't seem at all concerned about yesterday's weakness. In fact, it may have actually encouraged them a bit.
We are now in the dog days of summer, and that can make it even more difficult to find good stock picks. You really have to dip deep for some new ideas. At the top of my list this morning was Aratana Therapeutics (PETX) , which had a very nice triple-top setup and is now breaking out.
I also like Oclaro (OCLR) following its earnings report. It is a bit extended here, and may need some consolidation, but I'm looking to build that as it develops.
BioTelemetry (BEAT) has been a longtime favorite, and it is running up on good earnings, as well. I cut my position in front of the report and am now looking for new entries. I'm hesitant to chase, but will keep it high on the radar.
Stay selective with your stock picks -- and don't be surprised if the market continues to see good support. There is still some good speculative action out there, and that is preventing me from trying to anticipate a breakdown.
